Closing out exposure to fluctuations in interest rates by matching the timing of cashflows associated with assets and liabilities. This is a technique commonly used by financial institutions and large corporations.

Process in which banks and other financial institutions monitor the maturity of their deposits (and short-term liabilities) against the length of their commitments (loans and investments and other short-term assets) taking into account interest rate fluctuations and their potential impact on the financial results of the institution.

Matching an individual's level of debt and amounts of assets. Financial institutions carry out asset-liability management when they match the maturity of their deposits with the length of their loan commitments to keep from being adversely affected by rapid changes in interest rates.

A risk management technique designed to earn an adequate return while maintaining...

Techniques for protecting a firm's solvency in the context of accrual accounting.